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GBP/USD Exchange Rate near Seven-Month Low on Bruising Brexit Forecasts

Last week’s high: $1.3290

Last week’s low: $1.3061

Pound US Dollar Exchange Rate Damaged by Brexit Pacing Fears

Despite an advance on Friday, the Pound struggled against the US Dollar for most of last week and hit the lowest exchange rate since November 2017.

This devaluation was down to concerns about limited Brexit progress this year, which came to a head when EU leaders criticised the slow pace of development at a summit.

Last week’s US news focused on the side-effects of the ongoing US-EU trade war.

Motorcycle manufacturer Harley-Davidson alarmed markets when it announced that it was moving some production to the EU, in response to recent counter-tariffs.

USD Outlook: Turbulence ahead on PMIs and Jobs Data

This week’s trading will open with UK PMI data, but beyond Wednesday the only notable ecostats will come from the US.

Starting things off, today’s manufacturing PMIs might devalue the Pound as US sector activity is tipped to be higher in any event.

Sterling might weaken further if the construction PMI slows, but a mid-week services PMI rise could spark a GBP/USD exchange rate recovery.

There may be late-week US Dollar losses, as Thursday is tipped to show slowing non-manufacturing activity and a disappointing payrolls reading could come on Friday.

 

Key Events

2nd July

09:30 UK Manufacturing PMI

14:45 US Markit Manufacturing PMI

15:00 US ISM Manufacturing PMI

3rd July

09:30 UK Construction PMI

4th July

09:30 UK Services PMI

5th July

15:00 US ISM Non-Manufacturing PMI

19:00 US Federal Open Market Committee (FOMC) Minutes

6th July

13:30 US Change in Non-Farm Payrolls

13:30 US Unemployment Rate

 

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To keep up to date with the US Dollar, visit the USD blog in our Currency News section.

Arron Morris
Senior Currency Broker
T: 01442 892 065

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